HC Deb 20 February 1951 vol 484 cc1062-3
60. Sir W. Smithers

asked the Chancellor of the Exchequer what tax was paid by the Ministry of Food on profits made in 1949–50 of £14,800,000 on sugar, £4,800,000 on coffee and cocoa and £2,800,000 on fresh fruit and vegetables.

Mr. Gaitskell

Income Tax and Profits Tax, to which I assume the hon. Member refers, are not chargeable on profits which accrue to the State.

Sir W. Smithers

Is it not a fact that profits made under free enterprise are subject to tax? Why, therefore, should not the Ministries who are now trading be liable to tax when they are in competition with private enterprise?

Mr. Gaitskell

It would be a sheer waste of time to take the tax away and then pay it back to the Exchequer.

Sir W. Smithers

The whole thing is a ramp.